A manufacturer attempting to set prices for its products in export markets must realize that CIF,VAT,and distributor markup all lead to:
A)currency devaluations.
B)dumping charges.
C)market skimming.
D)price escalation.
E)market penetration.

Question

Quizplus · Accepted Answer

CIF (Cost, Insurance, and Freight), VAT (Value Added Tax), and distributor markup all contribute to price escalation because they add additional costs to the product as it moves from the manufacturer to the consumer in the export market.

A Manufacturer Attempting to Set Prices for Its Products in Export